… And then it cites an Upper Tribunal case to justify its fees (although the case actually refers to a couple who paid £3.15 for the registration)
… oh, and it won’t discuss the matter further, with the clear implication that it take the issue to court.
Which is exactly what the leaseholder should do … after having paid the demand and denying its validity. Thereby not being in breach and not liable to Freehold Managers’ legal costs.
Freeholders are determined to hold on to their subletting consent income in spite of the Upper Tribunal decision by George Bartlett, who ruled that £40 plus VAT was reasonable.
Here is yet another demand that exceeds that sum, and justification is a not-entirely-relevant case that actually pre-dates Bartlett’s ruling on January 5 2012.
Why the property tribunal is so feeble that freeholders can make a mockery of its rulings and routinely continue to demand payments that the courts have ruled that they are not entitled to, is one of the many absurdities of leasehold.
Here is an LKP reader’s latest predicament:
I am a leaseholder with Freehold Managers PLC as my freeholders for a flat I own in Portsmouth.
In my lease deed it does mentions that underletting requires the approval of the freeholder (“such approval not to be unreasonably withheld or delayed”).
However, nowhere in my lease mention of any fee (or how it is to be calculated).
The Freehold Managers are now demanding me to pay them according to one of the two options they offer (made up out of thin air to extract as much as they can).
Under Freehold Managers’ scheme a consent fee (£90) and licence fee (£120) of registration (both one-off fees) plus £120 for each new tenancy agreement blessed by them, is required under their Standard Licence fee – Option 1.
Under their Option 2, the Global 5-yr licence fee is £400 + £60 per tenancy agreement
An excerpt from their response email follows below.
1. The standard consent fee is a one off payment of £210.00 that is broken down as £90.00 for the consent and £120.00 of the notice of registration. Once this fee of £210.00 is paid you are then only required to serve the Lessor with notice for every new tenant or tenancy agreements made in regards to the above property.
2. The global licence is a five year licence. If you know that you have different tenants every six months this licence could work out cheaper for you as the notice fee is reduced from £120.00 to £60.00 under the global licence terms. The breakdown of the global licence can be found on the back of the application forms we have sent to you previously. A global licence cannot be used for multiple properties.
As stated before the Standard licence is a one off fee for consent.
Please refer to The Upper Tribunal case reference LRX/170/2011 in our favour of consent fees.
Please be advised that we have explained our position and will not enter into any further correspondence regarding this matter as such we suggest you complete the application form and return with the relevant consent fee and tenancy agreement.
The case cited by Freehold Managers is here